Indiana Farm Co-Op Sues To Recover $10M Loss From Subprime Junk Investment

In Indiana, The Indianapolis Star reported last week:

• Farmer-owned Indiana fuel refiner CountryMark Cooperative says it was burned by its investment adviser's decision to sink $10 million of the co-op's money last year into mortgage-backed securities that included now-notorious subprime home loans. In a federal lawsuit filed in Indianapolis last week, CountryMark alleges its $10 million note is in default and worthless because no trading market exists for it. CountryMark's lawsuit against Morgan Keegan & Co. charges the brokerage subsidiary of Regions Financial Corp. with violating federal and state securities laws and asks for recovery of the $10 million.

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• Morgan Keegan faces numerous lawsuits and other complaints by customers who charge they lost money in its funds and other investments based on subprime mortgages. A class-action lawsuit on behalf of investors has been filed in its home state of Tennessee.

For more, see CountryMark sues adviser (Co-op says brokerage bought $10M note backed by mortgages that's now in default).